Bad,Credit,and,Your,Mortgage,W finance, share, loan Bad Credit and Your Mortgage

If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that

When it comes to obtaining a mortgage for the purchase or refinance of a piece of real estate, one of the primary factors that plays a role in the approval of the mortgage is your credit score. This doesn’t mean that bad credit borrowers cannot obtain a loan, but it’s going to more difficult and come with less favorable terms than a mortgage for good credit borrowers.What is a Bad Credit Rating?The recent collapse of the mortgage industry has changed the landscape of credit scores. What was once considered to be a high credit score, in the low 700s, is now considered to only be mediocre at best. Your credit is calculated using several different factors, which includes your payment history, the type of credit you have, the longevity of your credit accounts and possessing the right mixture of a variety of credit accounts (credit cards, mortgages, auto loans, student loans, store credit accounts, etc.). In today’s mortgage arena, lenders want to see a borrower with a credit score of at least 740 to be considered a great credit borrower. Below 740 to about 720 is considered good and anything falling below this is considered a bad credit rating.Getting a Mortgage with Bad Credit When you have bad credit, but a lender approves you for a mortgage, it usually comes with higher interests rate (anywhere from two and five percent higher than the interest rate for good credit borrowers). On top of this, traditional mortgages such as fixed rate mortgages may not be an option. Some lenders offer less favorable terms to bad credit borrowers, so you may wind up with an adjustable rate mortgage and a variable monthly payment. How to Fix Bad CreditIf you have bad credit that is your fault—meaning you make late payments or do not make your payments at all—then the primary step for improving your credit score is to make all of your bill payments on time. If your credit score is low but you’re not sure what’s causing it, or if you don’t know what your credit score is, then you need to order a copy of your credit report and credit score from each of the three credit agencies (TransUnion, Experian and Equifax). Review these reports carefully for negative items. If the negative items are not yours, then follow the dispute process instructions for each agency to remove the negative activity.If the negative items do belong to you, then contact the creditors and collection agencies you have negative items with to see if you make payment arrangements or some other arrangements to take care of the debt. If and when the creditor agrees to an arrangement, be sure to obtain the agreement in writing. Also, be sure to stick to your end of the deal. Over time, these efforts will increase your credit score and make it easier and more affordable to obtain a mortgage. Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} About the Author Kristie Lorette is a freelance writer and marketing consultant that specializes in personal finance. She is also the editor of The Mortgage & Credit Diva, a blog devoted to mortgage and personal finance tips, tricks, and advice for consumers. You can read Kristie’s blog at www.mortgageandcreditdiva.blogspot.com or learn more about her writing and marketing services at www.studiokwriting.com.